Commercial Systems

Companies are increasingly being held to higher green, earth-friendly standards. A PV system for your business is a great way to secure better profitability for your property while letting your customers know that you value them and the planet we all share.

The Simplest Commercial System

The basic small category commercial system is about 10KW system generating 13,700 KWh/year. Here's your cost and return breakdown:

Total Cost 1

$73,200

  

Xcel Energy Rebate 2

$(44,550)

  

Out of Pocket Cost 3

$28,700

  

Federal Tax Credit 4

$(22,000)

  

Net Cost 5

 $6,700

  
1) Includes City of Denver permits & fees and state taxes. Other municipalities and counties have different fee structures.
2) Comes in the form of two checks via mail, about 60 days after system goes online.
3) Vibrant Solar can, for a fee, carry the rebate so you only pay the Out of Pocket cost.
4) Carry this credit back one year for a refund. If you have us install prior to filing your 2007 tax return that's the year you can take it. So use the tax credit right away.
5) Yes, it's true! And we do all the work, including processing all paperwork for your rebate. You just sign three contracts and write four checks.

 

This may be only a small portion of your electricity usage but it makes a difference and optimizes the rebate and tax credit. Naturally larger systems are available.

This system can be installed on most rooftops. With one phone call to us you can arrange a site visit where we can confirm your rooftop’s suitability.

There may be additional costs, such as panel upgrades, trenching for ground mount systems, etc. We will inspect your building, design and quote, so such costs are nailed down before you make a decision to proceed.

Sample System Spreadsheet

The sample system proposal below includes Denver permits and fees and city and state sales tax. Your own city or county fees will vary. There may be other costs, which we will determine after visiting your property. Once we measure and inspect your location we can finalize your own system quote. The visit, design and quotation are done with no obligation to you.

This system is the largest size that can go on one meter for a Small Category rebate of $4.50 per watt size of system. Each meter on your building can have up to a 10KW system to earn this rebate. If you have only one meter and want a larger system see below, the Medium category sample spreadsheet.

The Medium System Category is for systems larger than 10KW up to 100KW, on a single meter. Xcel Energy’s $2 rebate mandated by Colorado’s Amendment 37 is included. However, rather than pre-purchase your Renewable Energy Credits with an additional $2.50/watt, as in the Small Category, Xcel will pay for your RECs via paying you an extra 11.5¢ per KWh your system generates. This is an annual payment. While the rebate amount is less the Return on Investment is very good.

Ask us for a sample quote!

Standard Commercial Rates and Peak Demand Charges

There are two types of commercial service– standard commercial and “peak demand categories.”

Electrical Service Size Under 25KW

Small commercial systems are charged an average 9.4¢ per KWh used. You can determine that you are in this service category, called simply Commercial, plus get your annual usage and per KWh cost, by contacting Xcel Energy's customer service phone line, on the top right of your bill.

Electrical Service Size Over 25KW

Xcel Energy must be able to provide your maximum electrical needs at any moment. This means that the service size has to allow that much electricity to flow to you. Maintaining that size of service and the capability to supply your "peak demand" at any moment costs a lot more than the straight charge for KWh actually used covers. Naturally these costs are passed on to you.

Xcel Energy maintains a schedule of categories, based on peak demand, and charges for such demand on top of the per KWh usage charge. They monitor your usage and note the highest usage you have, based on the average use during five three-minute intervals on a given day. This puts you in a peak demand category. The most common category is called Secondary General.

Your Peak Demand Period

Motors use extra electricity when they are starting up. Often a building's peak demand is associated with this. Your peak demand may be when your staff arrives in the morning and turns on all the equipment, or at some other point of day or night. One simple thing you can do to reduce your peak demand is stagger the startup of equipment, turning on each machine or section of machines fifteen minutes apart.

BTW, during summer, when air conditioning needs are high, you could adjust to work outside of the hottest part of the day. But of course that may not be practical for your business.

Solar Photovoltaic systems do not reduce peak demand. The amount of electricity you need is the same though you offset it by producing electricity with solar. Xcel Energy is definitely buying the electricity your solar PV system produces, and for the same price they charge you per KWh. However, when you are in a peak demand category you are charged a significant amount for the demand category you are in, then charged less per KWh used than the standard commercial rate. If you are on Secondary General your cost per KWh is only 4.3¢ instead of the standard commercial rate of 9.4¢. So the monetary savings gained by your solar PV system are less. While the main goal of solar PV is reducing CO2, sodium dioxide and nitrous oxide emissions, we know that you, being in business, are also concerned with return on investment. The ROI when your are on a peak demand schedule is longer, but still very good. Ask us to get specific on this for your own situation, your own solar PV system.

Ask us about equipment that can reduce your peak demand and overall usage. We can include this equipment in your solar PV quote, to be included for the 30% federal tax credit on solar.